VAT for Bookkeepers
Presenters : Seanego Phillemon Thupishi BAP(SA)
Overview
A large part of the bookkeeping function involves processing VAT. It is therefore important for every practising bookkeeper/accountant to have full knowledge of how to determine the types of goods and services that are taxable as well as the correct completion and submission of VAT returns, including relevant documents retention.
SARS charges penalties and interest on late submissions and payments so it is important to know their deadlines too. Correctly determining VAT payable or refundable and avoiding these penalties also helps to minimise internal cash flow problems. This is very important in the case of the majority of SMEs which currently struggle with their cash flows.
Learning objectives
By the end of this webinar the participant should:
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Know and understand how VAT is administered;
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Have a practical understanding of VAT calculations;
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Know how to classify different types of supplies;
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Know SARS timelines as well as their penalties and interest charges; and
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Understand how VAT payable or refundable affects a business' cash flow.
Content
The webinar will cover the following topics:
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Background to the VAT Act No. 89 of 1991.
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Compulsory and voluntary registration for VAT;
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Responsibilities resulting from VAT registration;
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Working with VAT:
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Standard rate, zero rate and exempt supplies.
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Taxable and non-taxable supplies;
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VAT input and output;
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Non-allowable expenses; and
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Invoice and payment basis.
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Important VAT rules:
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Document retention;
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Preparation and presentation of tax invoices;
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Accounting for VAT on deposits;
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Accounting for VAT on bad debt relief;
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Correction of VAT errors; and
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Interest and penalties for mistakes and delays.
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VAT and its effect on business cash flow.
